
Case Law Analysis
|Madhya Pradesh High Court
Lok Adalat Award | Interest at 6% Mandatory on Delayed Payment Even for Bona Fide Delays : MP HC Jabalpur
The Madhya Pradesh High Court has ruled that interest under a Lok Adalat settlement is enforceable regardless of whether the delay in payment is bona fide, rejecting the Commissioner’s attempt to excuse non-compliance due to bank account restraint. This sets a critical precedent for claimants: compromise awards are binding contracts, and delays-even those beyond the insurer’s immediate control-trigger automatic interest liability as stipulated in the award.